Non-commissioned Exempt Accommodation

James Daly Excerpts

Wednesday 23rd February 2022 Commons Chamber

[Lisa Nandy]

My right hon. Friend is right: it is a waste. It is a waste of human potential, a waste of good, thriving neighbourhoods, and a waste of taxpayers’ money. It is more than that actually. The distortion in the housing market in these communities means that working families are being priced out of good, viable family homes. Other social tenants cannot access them either; when a person cannot get enhanced housing benefits, they are subject to the local housing allowance. The regulation is non-existent. Providers are exempt from planning and licensing laws that enable councils to limit the types and proliferation of houses of multiple occupation. The social housing regulator does not have the powers to deal with rogue operators as they set themselves up as small operators outside the direct oversight of the regulator. The effect of all of that is that whole streets and communities become saturated with family homes that are converted into HMOs, providing exempt accommodation and housing vulnerable tenants who are left without support. That creates problems for the whole community, and it is all happening in plain sight.

What is worse is that the people who are most affected—as I said to the hon. Member for North West Durham (Mr Holden)—are those who cannot do anything about it. Only the Government have the power to make changes for the better, which is why today we are calling for a package of emergency measures to set this situation right.

[James Daly (Bury North) (Con)]

I am a fellow Greater Manchester MP. We have the “Places for Everyone” scheme that has been submitted to the Government. I am very sympathetic to a lot of what the hon. Lady has been talking about. In Wigan and Bury over many, many years—from the way that the hon. Lady is looking at me, I think she knows the important point that I am making—there has been a dearth of action by Labour-controlled councils to build and to provide affordable social housing. Does she share with me a disappointment that there is no plan within “Places for Everyone” to deliver that?

[Lisa Nandy]

The hon. Gentleman should spend some time with my hon. Friend the Member for Westminster North (Ms Buck), because she would set him straight very quickly. I know his community very well—it is where I grew up and went to college, and it is where my mum lives—and he has a superb Labour council that backs its community at every turn and was part of dramatically improving the life chances of young people in its community and supporting the community. When Bury Football Club was collapsing, much to our desperate regret, it was his Labour council who stood by the community, while the Government stood and watched as the club fell apart.

[James Daly]

Will the hon. Lady give way?

[Lisa Nandy]

I think the hon. Gentleman should listen for once. His Labour council has stood in as a lifeline for people as support was stripped away over 12 years of Tory Government. It is about time that he not only acknowledged that, but got behind his local community and started standing up to this Government.

The regulation is non-existent. This is all happening in plain sight. The regulations must be toughened up. We need a proper test for what counts as care, support or supervision set out in law. It is right of the Minister to say, as I heard him say in the Westminster Hall debate, that that must be done thoughtfully and with care, but that is no excuse for inaction. Surely it is not beyond the collective wit of Government to come up with a scheme that roots out the bad providers and protects the good.

We need a regulator with the full range of powers needed to deal with the problem, with a fit and proper person test that must be passed before any provider can set itself up to care for vulnerable people. Local authorities need the power to reject applications on grounds of saturation or oversupply in a specific area and to insist on community impact assessments that have the power to prevent such over-saturation.

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[Julie Marson (Hertford and Stortford) (Con)]

It is a pleasure to follow the right hon. Member for Knowsley (Sir George Howarth), who made a lot of important points. I agree with him and I welcome the tone of the debate. This is an incredibly important issue and I welcome the consensus we are hearing. A lot of Members mentioned big cities, where there is clearly a very big problem, but I would like to flag that it is not limited by geography, social class or anything like that. So-called wealthy areas still suffer from pockets of deprivation. People in those areas still have vulnerabilities—mental health and domestic abuse know no dividing lines—so there is a wider application that makes it even more important that we discuss this issue, and that consensus is very useful.

It is almost a truism to say that everyone deserves a stable, secure and supported environment in which to live and thrive. That is a human right and when people do not have that, it makes everything else worse. This affects the most vulnerable in our society doubly because they already have needs, and then not having that environment impacts on them in a different way. I saw that time and again in my decade as a magistrate. People came before us with complex support needs and them having the right support, including housing and supported housing, was a big part of that.

[James Daly]

My hon. Friend is making some excellent points. In a previous life, I was a criminal defence solicitor for 16 years. I used to stand up and say, as the main point of my mitigation, “Can you sentence this person to a house?”, because a house is stability. Does she agree that some of the problems that we have heard today mean that rehabilitation and some of the real issues that go the heart of the criminal justice system are ignored?

[Julie Marson]

I thank my hon. Friend; I am trying to make exactly that point. Having a revolving door in the criminal justice system does not help anyone. It does not help victims or perpetrators. Supported housing and getting people the right support at the right time, in the context of secure, safe and decent housing, to a decent standard, is very much part of the solution. I welcome the Minister’s comments because he recognises that, as do the Government. It is important to recognise that there are many organisations out there providing caring support and working tirelessly to do so in conjunction with local councils. I am sure that we all welcome that across the House and want to expand the cohort of good, responsible, caring providers.

We must focus on the rogue providers that we are talking about, because they are a scourge on this activity and on the efforts of so many good providers. Rogue providers profit on the back of the most vulnerable in our society, and that damages not only the most vulnerable, but taxpayers and our society in a wider context. We have heard from the Minister and seen from Government actions that that has been recognised. We recognise how important that is and how important it is to drive up standards.

I welcome the Minister’s extra detail about the five pilot projects and the more than £5 million that has gone into supporting them. This is about learning the lessons, not putting on a sticking plaster. It is about bringing innovation, new ideas and experience to how we tackle this issue across the country. The national statement of expectations, setting minimum standards, helps in that regard. I hear comments about the flaws in them but that is an important concept that we need to focus on and constantly review to improve those standards all the time.

When I was a magistrate, I specialised in domestic abuse courts, and I was privileged to sit on the Bill Committee last year for what became the Domestic Abuse Act 2021. I want to emphasise how important that Act was in bringing together so many different elements that recognise women and children—the whole family—as victims of domestic abuse and in bringing into that equation the importance of safety, security and protective accommodation for women and children affected by domestic abuse. That exemplifies the Government’s commitment, because that issue was intrinsic to the Bill, and that lifeline was supported by £125 million of funding.

During the pandemic and since we have seen a focus on rough sleeping from the Government. The fact that this area involves domestic abuse, mental and physical vulnerabilities and rough sleeping shows us how complex it is, with multifaceted approaches needed to different problems. We have invested more than £200 million to deliver the commitment to provide 14,500 bed spaces, plus another £433 million for the rough sleeping accommodation programme. It is not a one-size-fits-all approach, but the actions of the Government prove that there is a commitment not only to improve, constantly change and review where we are, but to provide the funding that goes along with that. I welcome the debate, welcome the Minister’s comments and welcome the consensus across the House.

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[James Daly (Bury North) (Con)]

It is a genuine honour to follow the hon. Member for Westminster North (Ms Buck). We have sat through many meetings of the all-party parliamentary group on legal aid over many months. She personifies the best of this place, in that what motivates her is hopefully what motivates all of us here: the desire to find solutions. Solutions are never simple, however, and this is a very important debate on a hugely significant issue.

Many different strands feed into the solutions that we need to address this issue, but the underlying problem—dare I say it—is one of levelling up. The sector contains accommodation that is provided for those with support needs. It is the aim and desire of this Government’s policy, of the Opposition and of every politician here that the solutions to those support needs are bespoke and are seen to help, to drive forward change in a person’s life and to give them the best chance to enrich their life with positive experiences. However, that is not happening. In certain parts of the country, rogue landlords are charging the taxpayer a fortune and essentially providing no support whatsoever. That is absolutely morally bankrupt.

We are very lucky, in that the Minister for Housing, my right hon. Friend the Member for Pudsey (Stuart Andrew), is a genuinely good man. Having spoken to him about this, I know that the words he says are genuinely meant. He wants to find a solution. He wants to work with the Opposition, and I am delighted by the tone of this debate. He is a good man and I know that he will work to ensure that we have a response that is appropriate to address some of these needs. We have heard a number of interesting speeches, and the right hon. Member for Knowsley (Sir George Howarth) made a very good speech highlighting the housing market and buy to let. He asked what we as politicians wanted to do to set up a housing market that worked for people. I think he was suggesting—he will correct me if I am wrong—that we should ban second homeowners.

[Sir George Howarth]

I did say that there were also a lot of legitimate reasons for people wanting to own a second home. What I am concerned about is those who are acquiring additional properties just in order to let them.

[James Daly]

The right hon. Gentleman raises a fair point.

As I said in my intervention on the shadow Secretary of State, the motion says the sector is being impacted by

“a chronic shortage of genuinely affordable housing, reductions in funding for housing-related support, new barriers to access for single adults requiring social rented housing”.

I agree. For a single person in my borough it is nigh on impossible to get any accommodation whatsoever. As I said to my hon. Friend the Member for Hertford and Stortford (Julie Marson), I battled for 16 years to get housing for clients with the most acute social problems. I told court after court that unless these people were put somewhere with appropriate support and stable accommodation, the sentence imposed by the justice system would be pointless, because they would come back. I said the same thing time and again, and nothing ever changed.

We must be open and honest, and we must not be critical. We have to think about how we can improve the housing stock in all our boroughs. When I start my contribution by saying that we do not have enough housing for people in my borough, there is clearly something wrong and we have to do something about it.

We have a plan called “Places for Everyone” on Greater Manchester’s strategic housing need. It has been submitted to the Secretary of State, and I am sure it will come across the Minister’s path at some point. Such documents will affect all our areas, and certainly the areas that the shadow Secretary of State and I represent, for years to come. In a document of well over 300 pages, I can find virtually no reference to social housing or social rented housing. This is our strategic housing plan to meet the needs of individuals in Bury and elsewhere.

Throughout my 10 years as a councillor in Bury, I said that our housing stock is far too expensive. It costs more than £300,000 to buy a three-bedroom house in the vast majority of my constituency in the north of England, which is beyond people, certainly people with support needs. There is a glaring and obvious need to build social rented housing and genuinely affordable housing in Bury. There are brownfield sites in the borough that could be used for this purpose, and we still do not have it. We can talk about sticking plasters to address the problem, but we also have to focus on the long-term strategy to overcome it.

The only such provision in Greater Manchester’s strategic plan for the next 25 years says:

“Make provision for affordable housing in accordance with local planning policy requirements, equivalent to at least 25% of the dwellings on the site and across a range of housing types and sizes (with an affordable housing tenure split of 60% social or affordable rented and 40% affordable home ownership)”.

In a document of many hundreds of pages, that is it. That is literally it. There is no bespoke plan—the shadow Secretary of State has disappeared—whether it is in Wigan, Rochdale or wherever it may be. Unless we have that plan, social rented housing will not be at the centre of public policy. Local authorities cannot run away from this. The temptation of local authorities of all political persuasions is always to blame the Government for everything.

[Ruth Cadbury]

Is the hon. Gentleman not aware that local authorities cannot put anything about social rented housing in their strategic plan without a Government commitment to fund it? My council, Hounslow, is building 1,300 council homes, almost all of it from the council’s own proceeds. That is it, and the council is doing it at a slower rate than the right to buy. Even at this rate, the council is losing council homes because it does not have the funding from central Government. We were building hundreds of thousands of new council homes in previous decades because they were funded by Conservative and Labour Governments, and he needs to be challenging his Government to do that now.

[James Daly]

I thank the hon. Lady for that intervention, but, in respect of Greater Manchester, I think she has answered her own question. If what she says is the case, what an indictment it is of the Labour councils in Greater Manchester that they have not even bothered applying for the Government funding that would underpin that long-term strategy. I have been a councillor for a long time and we have been asking them for that strategy, in order to take advantage. I could cite the billions of pounds that are available to support these strategies, but Labour councils in my area—[Interruption.] Heads are being shaken, but Labour councils in my area have made no effort to address this problem. I want to take this opportunity in this Chamber to encourage my local councils to be as proactive as the hon. Lady’s.

[Brendan Clarke-Smith (Bassetlaw) (Con)]

My hon. Friend rightly mentions housing supply and making sure we have a balance on that, as well as having affordable housing for people. Does he agree that the proposals in the recent White Paper on levelling up and looking at what more we can do with brownfield sites give local authorities more of an opportunity to explore that, think outside the box a little and provide the kind of homes he has mentioned?

[James Daly]

My hon. Friend is absolutely correct. The desire and policy of this Government is to ensure that we have beautiful homes developed for the benefit of everyone in our country, and there is money behind this: a £12 billion boost for affordable homes, including social rented homes, to help those with physical or mental challenges; and £5.4 million of additional funding for a pilot scheme in key areas, helping us to understand the most effective interventions for future national policy. We are also introducing a higher minimum standard for supported accommodation. So the money and the desire are there, and the policy direction from central Government says that local authorities come to us—[Interruption.] I am answering the point that has just been made. We want to support councils on this. We want to provide the funding that is going to develop those brownfield sites in their boroughs, but what are the Government to do if local authorities do not even have that conversation with the Government? I am assuming that the councils have not had it with the Mayor of Greater Manchester. What is the point if they do not do that? I am known as a collegiate parliamentarian, and I am simply here to encourage my local authority in Bury to work with the Government, who want to work with it to ensure that we get the housing stock that is absolutely needed in our borough. I am proud to be part of a Government who have this strategy, want to support local accommodation and do not take the view of my local authority. This is a difference of opinion. My local authority, in terms of prioritising social need, social housing or social rented housing, believes in the policy document, and believes in building four-bedroom and five-bedroom houses on the green belt. That is its choice, as a local Labour authority. I believe, and support this Government’s intention, that we should be prioritising the development of brownfield sites, and ensuring that people have access to a home and that those support services are in place. In my local authority, over the 18 months of the pandemic, over £180 million was provided, on top of the normal grant funding, to support important services—

[Mike Amesbury (Weaver Vale) (Lab)]

Fewer than 6,000 homes for social rent were built last year. The homes in the “affordable homes” programme are not affordable at all—it is a skewed, vandalised definition of “affordable homes”. Local councils, certainly in Greater Manchester, and up and down the country, have their hands tied behind their back; they cannot build those social rented homes. They cannot do it.

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[James Daly]

The hon. Gentleman makes an important point about the definition of what “affordable housing” is in respect of the percentages in new housing developments. The hon. Gentleman, whom I like very much, puts the point on this. Sadly, my local authority shares that attitude of not doing anything and being beaten before it starts, rather than looking at the relationships with Government, in order to provide the funding and the vision, which has been offered by Bury Conservatives for many years. That is the vision we need.

[Mr Mahmood]

Birmingham set out its own house building programme, but it has not been able to provide the volume of housing that it needs because of the Government restrictions. It is not that Birmingham does not want to build houses; it does want to build houses itself, but it was not able to do it.

[James Daly]

I hope the hon. Gentleman will speak to the Labour leader of Bury Council and encourage him to set up his own housing company, as we have been suggesting, to address some of the needs and provide the housing needed for people who come into the sector. I agree completely with the sentiment that has been expressed in the debate.

I know that you would not wish me to sit down, Mr Deputy Speaker, without correcting a comment made by the shadow Secretary of State—I am sure inadvertently—about Bury football club. I refer to Gigg Lane, which relates to this discussion in that one way we sought to ensure that Gigg Lane was truly representative of the community was to investigate the possibility of putting social housing there. Over the two and a half years since September 2019, when I first stood up in Bury Council and addressed the matter, we have been looking to those types of conversations and actions to improve housing and support services. During that period, Labour-controlled Bury Council has provided no help, assistance, money or contribution whatsoever for the purchase of Gigg Lane. I just wanted to make that correction. Gigg Lane, as part of the levelling-up agenda, was paid for with £1 million provided by the Government, to make it a central part of the Government’s levelling-up agenda.